Guide to Calculating Customs Duty and VAT
Many online shoppers and importers face the challenge of estimating the final cost of shipments. This tool uses the standard (Value + Shipping = CIF) formula, applies the duty rate, and then compounds the VAT to give you the precise Landed Cost.
Frequently Asked Questions
How is the CIF value calculated for customs?
The CIF value is calculated by adding the item's original cost, the shipping cost, and insurance. The customs duty percentage is then applied to this total.
Is VAT applied to the shipping cost as well?
Yes, VAT is calculated on the total landed cost, which includes the item value, shipping cost, and the applied customs duty.